Abstract
The world tire market was equal to 80 billion dollars in 2005. That is to say that each year more than 1 billion tires are sold for cars and light trucks. 75% of the sales are for European, North American and Asian countries. Michelin is the leader of this market in those areas because it deals with about 75% of the sales. The tire market is growing market: a growth of about 3% each year. The three largest tire manufacturers account for 55% of the world market. Michelin is the world number one tire manufacturer. It owns 20% market share. The purpose of this report is to study the financial health of Michelin. For this, first we will make an historical analysis of the firm over the last four years, then analyze the debt structure and at last, study their dividend policy. This summarized board of figures show us that revenues of Michelin are quite steady during the last 4 years. However, there is a slight increase in retained earnings. As regards the stock price for Group Michelin, the figures in the board are the last values of each year. To have a best view of the stock price variations, there is a graph below of the stock price of Michelin during the five last years.
